Explicit price fixing:
A. is illegal in the U.S. and in the European Union.
B. is illegal only in the United States.
C. is illegal only if the firms engage in punishment strategies.
D. has not occurred in recent years.
Answer: A
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The Neoclassical Heckscher-Ohlin model assumes that all producers of any industrial product has knowledge of, and may avail itself of the same production technology available to producers in any other country
Many have flagged this identical technology assumption as unrealistic. During the past half century, the relative importance of Multinational Corporations (MNCs) in world trade has steadily increased. How would this trend affect the realism of the "identical technology" assumption?
Discuss some of the general conclusions arrived at about supply-side tax initiatives
The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, the ensuing financial crisis:
A. made it difficult for government to finance deficit spending. B. led to widespread inflation. C. shifted the PAE line upward. D. increased the level of uncertainty about the future.
Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists has a higher markup over wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.